Interesting article about Oil

wanghong

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1 ^+ r& O; C* U. TBelow is an Interesting article I found, which says that.....Do not
8 Q) T2 K- J; Pexpect much from Crude Oil producers and future is not with the
5 U5 x4 N/ x; X- E' q' ecompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
, [* q& X$ s" f0 l$ S; _" v& P# Qcrude prices improves. This implies also to good names such as Shell,
8 O+ k& w, v1 ^% i6 W! mEXXON, BG, BP, Cheveron ....xyz.. oils
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Recently OPEC reduced crude oil production twice over just a few
: D8 `7 z) R8 gmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.

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There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:


1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
& c0 U1 C3 N& Z9 hArabia.
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+ e: L2 A  t# `+ o* v2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
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3. New methods of injecting CO2 and surfactants into oil wells is
+ O' y+ D1 q5 H/ rbeing used to double their output.
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4. Production of bio-fuels is beginning to reach critical mass. Bio
! s/ v" |- D% Z( X! B) sfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
' `! e8 ~3 f$ r, Y  F, r! lracing to produce bio fuels.
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" B0 i% J8 t. _5. Virtually every restaurant in the US and all food processing plants
* u: [  _' f' W5 `1 Care now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
% O7 j. Z' C- Sto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
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. t3 y; L8 y+ q5 [8 a6. There are 99 nuclear reactors in various stages of planning and
! ~4 u) P3 r# y1 a5 P  Iconstruction around the world at this time. Several hundred more are
; H( Y0 }0 J6 n$ ]& Jexpected to be built in the future. Much of the energy they produce
/ Q& c( p8 X" N8 G, m$ ?7 ?will replace oil.

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7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
, O" y' h$ f  X- v4 j0 jwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
equipment.
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Airlines are flying airplanes with bio-fuel. They are finding the bio-
5 g* e& q0 }/ A: w! I: ffuel is cleaner and performs better than jet fuel.

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) y) }# p" M7 j1 ?( T8. Cities and counties throughout the US are selling the rights to
3 E$ U! z# v4 y% C! A9 \* z. ecapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
, a; M, L: b9 E' x2 g8 Foil.
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9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
oil wells.
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10. Solar, wind and ocean energy is displacing oil as an energy
9 K: g' u- T4 ~& Y' N! @source. Three new wind turbines are being erected every day in the US.

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+ L" K' a+ [7 c4 ~! I; i8 J: mEach of the above by itself will not make a large difference in the
0 i- a/ v% j' k- \/ }' tprice of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
to control oil prices.
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% `5 e. ~* N. M: e( K% FWith the above scenario, I still believe that there are under
6 ]) O2 k8 b1 v& jperformed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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- z; R0 I. M& @9 h4 o/ e1 KThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only